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February 5, 2008 4:13 AM PST

Silicon Valley after a Microsoft/Yahoo merger: a contrarian view

by Marc Andreessen
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This post is not about the potential Microsoft/Yahoo merger.

Instead, let's just assume for the moment that Microsoft succeeds in its bid for Yahoo.

What would a Microsoft/Yahoo merger mean for startups in Silicon Valley?

Some smart people whom I respect a great deal believe that a Microsoft/Yahoo merger would be bad for Silicon Valley startups.

Says Bill Burnham, for example: "By swallowing up Yahoo, Microsoft will be removing one of the biggest and most active acquirors of start-ups in Silicon Valley... [making] M&A less competitive in general and [reducing] the # of potential exits... [which is] bad news for Internet [startups] and their VC backers anyway you look at it."

I respectfully disagree; ... Read more

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About Marc Andreessen's blog

Marc Andreessen is the chair of Opsware and cofounder of Ning, a consumer Internet company. He is best known as a cofounder of Netscape Communications Corporation and co-author of Mosaic, the first widely-used web browser. He writes a blog at blog.pmarca.com, which is reprinted here with permission.

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